Sutterfield, Inc., reported the following items at December 31, 2014, and 2013: Requirements 1. Compute Sutterfields (a)

Sutterfield, Inc., reported the following items at December 31, 2014, and 2013:

Requirements
1. Compute Sutterfield’s
(a) Quick (acid-test) ratio
(b) Days’ sales in receivables for 2014. Evaluate each ratio value as strong or weak. Sutterfield sells on terms of net 30 days.
2. Recommend two ways for Sutterfield to speed up its cash flow fromreceivables.

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A1 Balance Sheets Summarized) Year End Year End 2014 2013 2014 2013 Current assets: Current liabillties: 11,000 $ 7,000 Accounts payable20,000 21,500 27,000 16,000 Other current liabilities 112,000 114,000 6 Cash Marketable securities 8 Accounts receivable, net 61,000 75,000 Long-term liabilities 9 Inventory 20,000 21,000 198,000194,000 2,0001 2,000|Stockholders' equity 10,000 Other current assets 147,000147,500 299,00034,000 Total labilities and equity $ 299,000$304,000 liabilities and equity 299,000 304,000 Total assets 13 14 Income statement ( 2014 $ 780,000 Sales Revenue